Mortgage interest Rates:
Interest rates continue to fluctuate and the gap is widening between the short term fixed and floating rates and the longer term fixed rates. Overseas pressure remains on long term funding and whilst short term rates are expected to remain stable over the next few months, predictions are that the floating rate could be back at 8% within 18 months.
It is also timely to remind you that it’s better to have consumer debt e.g. credit card balances & HP’s transferred to your home loan to make considerable interest savings.
Funding for rental properties and over 80% borrowing is tightening and you are encouraged to approach me to discuss any home lending you or your family may be considering.
KiwiSaver:
Have you and your family got your slice of the KiwiSaver cake yet? Membership continues to grow rapidly with total membership now close to 1.2 million people. The demographics are interesting with 17% of members under 18 years of age and 18% aged 55 plus.
KiwiSaver is a tremendous opportunity for every New Zealander whether you are a child or under the age of 65, even if already retired or not working.
If you or your family members are not a member or are in an IRD default scheme we should discuss how KiwiSaver could work for you. The benefits including the $1,000 kick start and Government contribution matching to $1,042 p.a. are hard to beat.
Life Insurance Premiums:
Everybody dislikes paying premiums and I am constantly told that clients are over insured but the widow or widower always says the cover could have been higher.
Options are now available to make premiums affordable over the longer term and are known as level premiums. There are considerable long term premium savings to be made utilising level premiums and I should also note that the premium is guaranteed for the term of the contract so will not be subject to any changes following the introduction of new Life Industry tax changes being implemented from July 2010.
Why would you not transfer to this? This is the question I am asking everybody. Let me provide you with some level life premium options to show you the premium savings that can be made over the life of the policy.
Competitions:
Sovereign have a great offer to clients where they can enter to win an $8,000 holiday plus $2,000 spending money. Just visit www.sovereign.co.nz and follow the home page link.
I am available to discuss your insurance and investment needs in what is a difficult time for many of us at the moment so please feel free to contact me if you have any questions. My personal email is denis@thorner.co.nz or ph 04 528 8088.
I look forward to hearing from you soon.
Kind regards
Denis
